Rishi Sunak is expected to promise to “stand by” hard-working families and put forward further plans to support people with the rising cost of living when he reveals his spring statement later.
It is implied chancellor will unveil proposals aimed at building “a stronger, more secure economy” as people across the UK face growing household bills, which have been exacerbated by the war in Ukraine.
He would also say that building a strong economy is fundamental to enabling Britain to address the threat posed by Russian President Vladimir Putin stands for its values.
Sir. Sunak faces calls to ease the cost-of-living crisis facing households across the UK
Watch and follow the Chancellor’s spring statement on Wednesday from 12.30 on Sky News
“We will face this challenge of our values, not only in the weapons and resources we send to Ukraine, but in strengthening our economy at home,” Mr Sunak is expected to say.
“So when I talk about security, yes – I mean reacting to the war in Ukraine.
“But I also mean the security of a faster-growing economy.
“The security of more robust public finances.
“And security for working families as we help with the cost of living.”
Chancellor’s spring declaration is also tipped to outline how the government plans to create a new corporate culture where the private sector invests more and innovates more.
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Families choose between food and power
Sunak will deliver a spring declaration in the middle of the cost of living crisis
Sunak will prepare a fiscal policy statement at a crucial time for the country, where hard-pressed families are facing huge increases in their cost of living.
They are going to rise much higher in the coming months the impact of the war between Russia and Ukraine intensifies and subsequently the cost of living is likely to be at the top of the Chancellor’s agenda for his opinion.
Read more: What can you expect from the chancellor’s spring statement?
For households, it is the impact on fuel prices and energy bills that hurts the most – leaving Mr Sunak facing calls for concrete action.
As a result of the invasion, the Bank of England now believes inflation will peak 8% in April and go even higher in the fall.
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War to increase the cost of living in Britain
Fuel tax a policy to see
One thing to be aware of in the statement is whether the Chancellor is lowering the taxes on petrol – as other countries in Europe and further afield have already done.
The average price of petrol has risen to a record high of 165.37 per liter, an increase of more than 55% in the last two years. Diesel has also risen by a similar share to 177.47p per liter, according to figures compiled by the government.
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Following the economic costs of the shutdowns and the war in Ukraine, the Chancellor has much to do to restore public finances.
Read more: Four possible actions the Chancellor can bring in
As a result, the average fuel tank now costs almost £ 90, an increase of around £ 33 compared to May 2020.
Recently, wholesale costs have risen sharply, partly made more extreme by Russia’s war in Ukraine.
Reports suggest that a reduction in fuel tax of 5p per. liters are on the cards.
Sunak is expected to say he will ‘stand by’ hard-working families facing rising household bills
Chancellor faces calls to facilitate NI migration
There are also questions about what the Treasury plans to do to ease the pain of the health and social security tax, which is due to take effect in April.
This change – actually an increase in social security payments – will mean severe increases in tax payments for most families just as inflation approaches its peak.
An increase in the social security limit has been talked about as a possible move.
Labor is urging the chancellor to impose an unexpected tax on oil giants
Labor has urged Mr Sunak to consider an unexpected tax on oil producers – whose profits have been boosted by soaring oil and gas prices – to pay for household living costs.
Elsewhere, the government cut VAT on the hospitality sector during the pandemic, and it remains at a reduced rate of 12.5%.
It is expected to return to 20% in April, but industry groups have called for it to stay lower for longer to benefit jobs.
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Encourages unexpected energy tax
And the chancellor is reportedly also resisting pressure to increase defense spending.
However, the state’s borrowing is now £ 26bn. lower than expected for the fiscal year so far, putting the chancellor in a “better” position to ease the cost-of-living crisis – according to the Resolution Foundation.
Borrowing in the first 11 months of the financial year 2021-2022 was DKK 138.4 billion. pounds, which is less than half the record of 290.9 billion. pounds from the same period the year before.
The figure is about to fall below the £ 183 billion forecast that the government’s budget responsibility office had forecast in October, mainly due to higher-than-expected tax revenues.
However, the Office for National Statistics (ONS) said interest payments on government debt rose to £ 8.2 billion last month, up from £ 5.4 billion a year earlier and the highest ever in February.
Prior to the spring statement, the Labor Party branded Mr Sunak a “high-tax chancellor” after releasing their own analysis, which revealed that he has raised more taxes than any person in his position for half a century.